Business News

• India in policy tightening mode
• Foreign Investment in MFs from 1Aug

India in policy tightening mode

India is in a fiscal and monetary tightening mode, finance minister Pranab Mukherjee said ahead of the central bank's interest rate decision next week.

“Inflation is now spilling over to manufactured inflation”, Mukherjee said in a statement in New Delhi on Friday. “We are in a tightening mode on both fiscal and monetary fronts that should reduce whatever elements of demand side pressure there may be”.

Foreign Investment in MFs from 1Aug

India will allow qualified foreign investors to invest up to $10 billion in domestic mutual funds from 1 August, a senior finance ministry official said.

The government expects good inflows from qualified financial institutions into mutual funds in this fiscal year to March 2012, Thomas Mathew, joint secretary, capital markets at the finance ministry, said on Friday.

(Source- mintlive)